Highlights of the Guide to Commercial Real Estate Investment in 2022

A diverse set of sessions covered topics such as how climate change affects investment decisions, basic real estate performance, tips for navigating a market with tight returns, and market highlights. recent research on investor expectations in connection with WMREsecond virtual forum in 2021.

Guide to commercial real estate investment in 2022 took place last week. All four sessions can be viewed on demand by register here. The forum followed CRE 2021: Transition to takeover, which took place in August. (These sessions are also available on request by register here.)

This forum has explored some of the strategies for investing in commercial real estate in an age of innovation. Investors have access to commercial real estate on both the public and private sides and can choose from traditional property types (office, retail, multi-family, industrial) as well as existing and emerging alternatives (hotel, senior housing, student housing, data centers, etc.).

The sessions included:

What the modern real estate investor really wants

AppFolio Investment Management surveyed more than 100 real estate investors to better understand the relationships they have with their management companies, their objectives and their concerns regarding the sector. The company compiled these findings into a comprehensive report that Greg Boyleston, senior product manager for Appfolio Investment Management, explored during the session.

Return of the core

Ali Zaidi, Head of Real Estate Assets at LSEG, and Calvin Schnure, Senior Vice President of Research and Economic Analysis for Nareit, explained how listed real estate securities are an important part of a set of investment opportunities. investment. The characteristics of real estate as an asset class – an often relatively predictable income stream and the frequent indexation of rents to inflation, offering the prospect of real long-term returns, as well as a relatively predictable return stream. uncorrelated to other sectors of the equity market – making this investment category a natural consideration for investors looking to diversify their portfolios with long-term savings goals.

Climate risk in CRE: how CRE professionals can measure and manage the impacts of climate change

Growing risks from climate change, such as forest fires, floods, and other hazards, require commercial real estate professionals to change their decision-making processes both from an economic modeling perspective and from a business modeling perspective. functional view.

During this roundtable of Moody’s experts, Victor Calanog, head of CRE economics, Natalie Ambrosio Preudhomme, director of ESG solutions, and Eric Bao, director of quantitative research, had a conversation on:

  • The science behind climate risk data and how experts distill this information into actionable and useful information for CRE professionals.
  • How economists integrate climate risk data into their forecasting models and what are the implications for performance fundamentals.
  • How investors, lenders and brokers can functionally integrate this data into their decision making.
  • How climate risk scores can impact credit risk decisions and processes.

What to expect in a world of 3% cap rates and reduced returns

Larry Jacobson, CEO of The Jacobson Company, a multi-generation private equity real estate firm based in Southern California, explained how to navigate a world of ever-rising prices and downward pressure on returns. He explained how investors need to remain vigilant about where they invest their capital to ensure that their quest for yield is tempered by a careful concern for preserving wealth.

Appfolio was the Platinum sponsor of the forum. Moody’s Analytics, The Jacobson Company and FTSE Russell were Gold Sponsors.


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